TEXT-Fitch: no impact on 2 structured finance transactions following novation of counterparty

Reuters Staff

3 Min Read

Feb 19 - Fitch Ratings has been notified of a novation of the hedge
counterparty, The Royal Bank of Scotland PLC (RBS) to The Bank of New
York Mellon (BONY). The ratings on the subject transactions listed below
will not be affected by this novation.
Fitch has been notified that effective Feb. 19, 2013, RBS will novate all
rights, liabilities, duties and obligations to BONY under the respective ISDA
Master Agreements and the Credit Support Agreements and Annexes (CSAs) on the
transactions listed below. Currently, BONY's Fitch Long-term Issuer Default
Rating (IDR) of 'AA-', Outlook Stable, and Short-term IDR of 'F1+' are
sufficient to support the ratings of the affected transactions under Fitch's
counterparty criteria.
Fitch is not a party to the transactions and therefore does not provide consent
or approval to the novation of the transactions as that remains the sole
preserve of the transaction parties. Fitch expects to be notified by the trustee
when or if the proposed changes are executed either in part or in their
entirety.
Fitch encourages issuers and arrangers to disclose publicly, as early as
possible, any proposed changes and amendments to transaction structures and
documents to all interested parties. This will enable investors to conduct their
own analysis in a timely fashion.
Fitch will continue to monitor these transactions based upon the amended
transaction documents and most recent applicable Fitch criteria.
The affected transactions are as follows:
HIS Asset Securitization Corp Trust 2006-HE2
Structured Asset Securities Corp Reverse Mortgage Loan Trust 2007-RM1
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Counterparty Criteria for Structured Finance Transactions' (May 30, 2012);
--'Counterparty Criteria for Structured Finance Transactions: Derivative
Addendum' (May 30, 2012).
Applicable Criteria and Related Research:
Counterparty Criteria for Structured Finance Transactions
Counterparty Criteria for Structured Finance Transactions: Derivative Addendum